In his latest update on cryptocurrency markets, prominent Bitcoin investor Anthony Pompliano shared key facts about the effect of China’s BTC mining crackdown on chain metrics.
Well-known industry analyst Will Clemente covered this week’s Bitcoin scenario by examining the chain’s metrics that aim to separate the “signal from the noise. “
As stated in the summary, the week came back busy for the BTC, with the value of cryptocurrency trading in this existing diversity of $30,000 to around $40,000 for over 6 weeks (and more). Clemente delved into last week’s preview of the channel from June 25 to July 1, 2021.
These are the main problems to remember, shared through Pompliano:
Bitcoin continues to “accumulate a giant capital base between $32,000 and $40,000, more than 15% of BTC’s cash source has moved within this existing range. “Meanwhile, the average or average hashrate (amount of computing power secured by the BTC network) continues to decline, “reaching its lowest level since the expiration of 2019 at some point;> Block 23-minute periods at any given time, slowed transmission, adjust difficulty in the coming days,” the report adds.
Bitcoin miners “have been found to be selling for the next month (allegedly a component of miners’ migration to China),” the report revealed, while noting that younger coins “continue to sell, adding up to the largest day of net losses in Bitcoin’s history (in US dollars).
The report also mentions that “there is still no primary accumulation in the number of new whales, with retail adding aggressively” and that the reaccumulation “continues”,while industry flows recommend a upward momentum. The additional report noted that solid currencies “continue. “to slowly return “and that “W-shaped recovery of new users continues, with more than 36,000 new users entering the chain consistently with the day. “
As in the update:
“Given the time we have spent in this range, there is now a third transparent chain volume zone for this market. 15. 91% of Bitcoin’s cash source has now moved within this existing range. “
The report also noted that Bitcoin’s hashrate continues to decline, “with a very small rebound on Wednesday the 28th” and on the 27th, it fell to its lowest point “since the expiration of 2019. “Despite some minor impacts, the network continues to ” serve as it has done and will do , ” the report confirmed.
The report adds that it is widely reported that Bitcoin miners have “played a vital role in falling value in recent weeks, as miners have sold BTC to control migration prices out of China. “
But Glassnode’s knowledge shows that crypto miners have “reduced their assets by 5269 BTC since May. Most of those sales were made in early June and this is not something that bitcoin’s market position absorbs smoothly. “
As explained in the update, “In terms of gross dollars, this is the largest day of losses learned in Bitcoin history, surpassing the previous record set in May. A total of $4,456,786,884 in losses was made.
Clemente also shared the distribution of the buying/selling habit of “different cohorts from the beginning of the fifth of June until now (7/1 at the time of writing)”:
As in the report:
“It seems that small entities are buying a lot while giant entities are cutting their stakes. “
If we look heavily at the age of portions sold (based on measures such as days of destroyed portions, inactivity, ASOL), it turns out that liveliness, as well as cohort data, young whales “have reached peak sales in the last month. “”
The update also that the number of new whales “has continued to decline, which we have been following for weeks. “
The update also noted that the maximum of this “great W-shaped recovery among new users entering the chain is retail; since the number of whales tends to decrease, the retail industry buys and whales sell. “
He adds:
“It would be desirable to know to what extent this evolution comes from the countries of Latin America. The network is returning to more than 34,000 new users in a manner consistent with the day. Remember that those are not addresses, but heuristics for identifying entities on the blockchain. “
He continued:
“As far as replenishment is concerned, the illyquid source replenishment is in green and the liquidity source index; created with the help of Willy Woo’s cartography; it continues its upward trend. These posters either recommend the same concept, the source continues to flow to illquidic entities. »
The update indicates that a smart way to see what’s happening is as follows: “a lot of liquidArray. . . spread over the counter, the market now slowly adds paper towels. The speed of the added paper towels is represented through the slope of the liquid source ratio, but as long as there are no more spills (capitulation where a giant amount of new source becomes liquid), the liquid (loose parts) will be absorbed by strong hands.
The report also noted that industry flows are now “increasing laterally; a replacement in the trend of what we saw before the sharp fall in May” and this “also shows an accumulation”.